Most people's view of the Middle East is often focused on two interlinked factors: its crucial position as the main global provider of oil, and the political tensions that exist in this part of the world.

But phenomenal economic growth, driven by surging oil prices, is giving states in the region a head start as they reposition themselves for a future beyond oil. The most notable shift: The Middle East is now promoting itself alongside China, Europe and the United States as a new hub for the world's economy.

The Middle East metamorphosis is most obvious in the six states—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE)—that form the Cooperation Council for the Arab States of the Gulf, commonly known as the Gulf Cooperation Council (GCC). Echoing the previous boom of the 1970s, the remarkable economic growth over the past few years of each state is largely attributed to the world's seemingly unquenchable thirst for oil. But whereas at that time most of the Gulf Cooperation Council's profits were invested internationally, now a significant proportion of the oil revenue is being invested internally, building the region's future.

Simultaneously, global organizations are being attracted to the region, drawn by the member states' process of joining the World Trade Organization, which bolsters the region's credentials as an increasingly open and attractive place to do business. The GCC states are also working toward currency union, and are negotiating or augmenting free trade agreements with states and organizations including the U.S. and the European Union.

Middle East Oil Windfalls Create New Investment for GCC

The level of investment in infrastructure in the GCC is startling. Around USD90 billion has been earmarked to create King Abdullah City in Saudi Arabia, where a mile-high tower is planned. Bahrain has nearly USD30 billion worth of construction projects either planned or in development. All together, a total of USD1.25 trillion of public and private projects are either being planned or are already in development in the Gulf Cooperation Council.

"There is a massive surge in business in the region, and there is a simple reason for it: All the money that is coming from the windfalls of oil revenues is being reinvested back into the economy. These infrastructure projects mean that attitudes to risk are evolving and new insurance and risk management products designed specifically for the region are springing up almost as fast as the new building projects," says Latif AlRayes, chairman and chief executive officer of Aon Middle East.

Luxury Service: Airports and Resorts

Dubai and Abu Dhabi also are establishing themselves as hubs for business, leisure and global travelers. Increasing numbers of travelers are visiting the beaches and cities in the region as a destination of choice, rather than just stopping over on long-haul flights to Asia and the Pacific. A number of airlines are growing exponentially to take advantage of this opportunity, including Emirates, Qatar Airways and Etihad Airways, and have earned a reputation for luxury service and investing strongly in the future, including being early adopters of the double-decker Airbus A380.

Karim Sfeir, regional representative for Aon Aviation & Aerospace in the Middle East, suggests that the growth in the aviation industry in the region is a classic example of the changes that are happening. "A decade ago, there was very little here, but now we have a number of the fastest-growing airlines and airports in the world."

The GCC is looking beyond the oil boom

The Arabian Gulf readies it's infastructure to become a global economic center. While oil has been the fuel for the rapid growth in the Gulf Corporation Council, the states in the region are in the process of transforming themselves, preparing for a post-oil world by attempting to become a global center for finance, information technology, education, tourism and other service industries.